AQA Economics Paper 3 2023 10 Marker

Sri Lanka’s GDP per capita means that, on average, individuals have more income and purchasing power. This is because the country has higher value of output per head compared with Bangladesh. As a percentage of Sri Lankas, Bangladesh’s is only 53% and Pakistan’s is 32%. This should translate in Sri Lankan citizens having a higher average income to afford goods and services, which enhance their wellbeing. One limitation of the data for Figure 2 is the lack of information as it does not state whether GDP per capita is in nominal or real terms. If for example, the data is in nominal terms, Sri Lanka’s GDP per capita could be inflated, meaning their average purchasing power could in fact be lower than Pakistan and Bangladesh.”
Figure 3 does highlight greater inequality for Sri Lanka with a Gini index of 39.3, 6.9 higher than Bangladesh and 7.7 higher than Pakistan, meaning it is the furthest away from the line of equality. Also, their income share of the poorest 40% of the population is the worst, with it being 3.4 and 3.3 percentage points lower than Pakistan and Bangladesh. However, even with this inequality, their poverty rates are lower and therefore even if there is an unfair distribution of income with a greater gap between the rich and the poor, those living on less than $1.90 a day is only 0.9% and (13.4 percentage points less than Bangladesh and 3.5 percentage points less than Pakistan), meaning they have less absolute poverty and more people with greater access to their basic human needs.
Figure 4 focuses on education and healthcare and Sri Lanka is superior in all. Not only do they live longer than Pakistan (9.7 years longer) and Bangladesh (4.4 years) but they have a much lower mortality rate, per thousand live births with 34.75 less than the combined average of 41.15, per thousand lives of Pakistan and Bangladesh. This suggests that they have better access to hospital provision as well as medicine. The data also suggests that they have greater access to education with the average mean years of schooling of Pakistan and Bangladesh being 5.7, whilst Sri Lanka is 4.9 years longer, meaning that they are more likely to develop greater skills, boosting their labour productivity and increasing their opportunities for greater income.
Overall, the data suggests Sri Lanka is more developed than Pakistan and Bangladesh and Figure 5 with the HDI offers the greatest support. HDI is designed to assess economic development and as Sri Lanka’s has the highest at 0.782 it supports this judgement. Not only does it consider health and education such as in Figure 4 but also gross national income, which is adjusted for purchasing power parity, and therefore accounting for differences in cost of living between the countries.

[@KausalyaaKangasuthan]

Great video! Wish i saw ur channel soon enough. Super helpful! Thanks a ton🎉

[@maryamkhan1724]

hey what type of limitations can u normally talk about|?

[@biz-omics8348]

Very much depends on what is given but my advice would be to look for inconsistencies and consider what’s missing